Mastercard and SumUp giving small businesses a boost
Mastercard and SumUp today announced a new partnership that will increase the number of electronic payment acceptance locations across 27 European countries. Over the next five years, Mastercard and SumUp will bring card acceptance to several million micro, small and medium-sized companies (MSMEs) across Europe.
The partnership will enable micro, small and medium-sized companies (MSMEs) to accept electronic payment via SumUp card readers by card and digital enabled devices, such as smartphones, smartwatches or wristbands. In a world in which consumers expect choice and convenience, it will enable small companies to better serve their customers by giving them the opportunity to pay with their preferred payment method.
Jason Lane, executive vice president, Market Development, Europe says: “We’re very excited to be able to partner with SumUp, an innovative and leading player in the provision of payment devices for the small business sector. The scale and breadth of this partnership will significantly advance electronic payments acceptance in Europe. Micro, small and medium-sized companies form the backbone of the European economy and this initiative will help them to better serve their customers by offering them real payment choice. I look forward to expanding this partnership in the future.”
Across much of Europe, cash still accounts for a significant proportion of payments, particularly when it comes to low value payments made to small businesses. However, cash continues to be an inefficient and insecure means of payment. The hidden costs of cash for small business can be substantial. Whether it is transportation costs, security issues, laborious counting, reconciliation or fraud and counterfeit notes, the acceptance of cash comes with many disadvantages. Mastercard and SumUp are committed to helping small businesses overcome these challenges and making payments safer, easier and more convenient by delivering simple and effective payment solutions. With SumUp’s innovative approach to mPOS and Mastercard’s focus on creating an environment in which such solutions can flourish the two companies are perfectly poised to achieve this.
Accepting electronic payments can also bring additional benefits. For example, offering electronic payments has been demonstrated to increase sales, bringing real benefit to a business’s bottom line. SumUp’s data shows that small businesses can grow up to 60% by starting to accept card payments. Mastercard’s research shows that on average, new acceptors of card payments usually see a 10-15% increase in their average transaction size, linked to value and volume as consumers are not limited to the amount of cash in their pocket. This is a particular issue for small shop owners in more remote rural areas where access to cash and ATMs can be scarce. Not only that, but electronic payments provide a boost to cashflow, enabling the timely crediting of funds with the benefit of a payment guarantee and eliminating the need to chase unpaid invoices and debt.
Marcel Schneider, CCO & EVP Europe at SumUp comments: “There is a card acceptance gap that exists due to smaller businesses historically not being well-served by traditional payment providers. 10% of any population should be able to accept card payments but only around 1% does. It’s this gap that SumUp and Mastercard are looking to fill through the partnership. “
With a payment terminal from SumUp, small business owners can focus on their business aspirations, confident that they have a payment solution that will support their business growth.
This partnership is another example of Mastercard’s and Sum Up’s commitment to growing financial inclusion bringing millions of micro-entrepreneurs into the formal economy for the first time.